Electricity reform to boost investment and services
A report by Agusto & Co has highlighted the potential benefits that may arise from
the recently signed Electricity Devolution Bill (EDB) in Nigeria. The report suggests
that the bill could lead to increased investment in power generation and
distribution infrastructure, as well as increased competition among power
providers, which could significantly improve the country’s struggling power sector.
By devolving power to the states, the bill could also lead to more efficient and
effective management of the power sector, as states will have greater control over
their power supply. This could result in more targeted investment in power
infrastructure and more responsive management of power supply and demand.
However, the report lamented the chronic underinvestment in generating and
distribution infrastructure within the domestic gas market, which poses significant
challenges for operators of thermal plants.
The report also noted that the Transmission Company of Nigeria (TCN) remains a
critical bottleneck in the supply of electricity, with its wheeling capacity of circa
8,100MW paling in comparison to the nation’s peak electricity demand of 19,798
MW. The report anticipates that the Nigerian Electricity Grid Maintenance
Expansion and Rehabilitation Program and the Presidential Power Initiative signed
with Siemens AG will result in some growth in the Nigerian Electricity Supply
Industry (NESI) in the short term. Finally, the report highlighted some concerns
about the potential for fragmentation of the power sector due to the bill.
Read more from us Arritone Consult
Subscribe to our educational channel https://www.youtube.com/@Examhood